Tata to set up small car unit in WB
The facility would be set up over an area of 700 acres and the land acquisition had already begun.india Updated: May 19, 2006 12:35 IST
The new government in West Bengal was greeted on its first day with an announcement by Tata Group chairman Ratan Tata on Thursday that his company will set up a small car unit in the state.
In the presence of Chief Minister Buddhadeb Bhattacharya and Industry Minister Nirupam Sen at the state secretariat's Writers Buildings, Tata formally announced that Tata Motors would build a Rs.100,000-small car manufacturing unit at Singur in Hooghly district with an initial investment of Rs.10 billion.
He said the facility would be set up over an area of 700 acres and the land acquisition had already begun.
"The prototype of the car has been chosen at the Pune factory," Tata said.
He said the unit would provide employment to 10,000 people both directly and indirectly.
In addition to the car unit, the company will also set up a Rs 2.5 billion facility to manufacture excavators and pay loaders near Kharapur in West Midnapore district.
Telcon, an 80:20 joint venture between the Tata Engineering and the Hitachi Construction Machinery of Japan, which now manufactures 35-tonne dump trucks and excavators in the states of Jharkhand and Karnataka, will set up the unit, he said.
Tata, who was expected to be present at the swearing-in ceremony on Thursday morning, flew in the evening in a private plane from Mumbai to make the much-awaited announcement.
Hardly had Tata left came another announcement of an IT park by the Videocon group in Salt Lake.
Videocon chairman VN Dhoot told reporters here that the company would invest Rs.8 billion on the IT park and pump in another Rs 1 billion to upgrade its plant at Taratala here to manufacture LCD screen TV sets.